as ExxonMobil’s third FPSO commences oil production

THE government, on Tuesday, welcomed the production of oil on the Prosperity Floating Production Storage and Offloading (FPSO) vessel operating in the prolific Stabroek Block offshore Guyana.

The project, approved in September 2020, is poised to yield over 600 million barrels of oil from the Payara field, with the Prosperity FPSO expected to achieve an average production of 220,000 barrels of oil daily as all 45 wells come online.

“Commencement of production at the Payara development is a significant milestone for our country, as it ushers in additional revenue in support of our nation’s economic development while it augments meeting global energy demand,” the Ministry of Natural Resources said in a statement.
The Prosperity FPSO follows the successful operations of the Liza Destiny and Liza Unity production vessels, marking the third project on the Stabroek Block.
The combined operation of these vessels is set to elevate total oil production to an estimated 620,000 barrels per day. The ongoing Yellowtail and Uaru developments, each projecting 250,000 barrels of oil per day upon start-up, are poised to contribute significantly to this capacity.
The Natural Resources Ministry said it is committed to utilising the revenues provided by this resource to further improve public infrastructure, the educational and healthcare systems, and various social programmes.

“Sustainable development and responsible environmental stewardship remain a priority of this government, as we continue to manage these resources towards the prosperity of the Guyanese people and this great nation,” the Natural Resources Ministry said.
ExxonMobil’s local subsidiary, Esso Exploration & Production Guyana Limited, the Stabroek Block operator, and co-venturers have submitted an application for the Whiptail Project, which is currently under government review.

Once approved, this project is expected to play a pivotal role in propelling Guyana’s oil production to just over 1.2 million barrels per day by 2027.
President of ExxonMobil Upstream Company, Liam Mallon, expressed enthusiasm about the partnership with the Guyana government, emphasising the positive impact on economic development and global energy demands.

“Each new project supports economic development and access to resources that will benefit Guyanese communities while also helping to meet the world’s energy demand…we’re pleased to work in partnership with the Guyanese government to make reliable energy accessible and sustainable,” Mallon said in a release from ExxonMobil.
According to the oil giant, the Prosperity FPSO and the previously commissioned Liza Unity FPSO hold the distinction of being among the world’s first FPSOs awarded the SUSTAIN-1 notation by the American Bureau of Shipping.

This recognition underscores the sustainability of their design, documentation, and operational procedures.
Notably, ExxonMobil’s Guyana developments exhibit an impressive 30 per cent lower greenhouse gas intensity compared to the average of the company’s global upstream portfolio, positioning them among the top performers worldwide in emissions intensity, outpacing 75 per cent of global oil and gas producing assets, according to independent research firm, Rystad Energy.
The oil company said that this endeavour has not only been a technological and operational success but also a boon for local employment and businesses.

Approximately 6,000 Guyanese are actively engaged in supporting ExxonMobil Guyana’s operations, constituting over two-thirds of the local oil and gas workforce.
ExxonMobil and its direct contractors have contributed more than US$1.2 billion to over 1,500 Guyanese suppliers since the commencement of operations in 2015. Production started in December 2019.